HENRY… a mortgage broker is the middleman between you and the lender

Is a mortgage a burden or a blessing to build wealth?

Most of us have to get a mortgage to buy property. However, our income ideas panel shares how you can not only can make money from the property, but the mortgage itself becomes a tool to also make money.

That said, when it comes to a mortgage there are two views. First, become completely debt-free, then grow wealth. That’s the low-risk view. The other view is use debt to become wealthy, which is all about taking on more risk by borrowing money to invest, usually in real estate. Doing so will make individuals wealthy faster, but through higher risk.

 

MORTGAGE BROKERS

One way to know which direction you should take is by reaching out to mortgage brokers. Although there are only a handful in Jamaica, they are paid by several different banks and do not charge prospective buyers for services. That way, you get unbiased support in making a profitable mortgage decision.

For example, let’s say you already have a home and want to buy another home, so you have a few options. 1) Pay cash for the new investment property.

 2) Get a conventional mortgage to buy the new place.

3) Use a home equity line of credit.

According to Karla Henry, independent mortgage broker, her role is not to advise you on the financies of the choice, but to determine which financial insitution will give you the best deal on the mortgage that you do choose.

Henry explains, “A mortgage broker is the middleman between you and the lender; working with a variety of lenders. I do the legwork on researching which lender and product is best suited for you, taking the hassle out of you driving around. I support you through the application process to the approval of the loan and beyond, up to the close of the transaction. I evaluate your income, credit history, tax info, financials, and bank statements for financial status. And the easiest part is that you can work remotely with me from the comfort of your office or home. I work with clients from all over the world.”

But how do you know which is the best way to go? Borrow or not?

http://www.jamaicaobserver.com/business-report/using-your-mortgage-to-build_wealth_118615